Stablecoin Popularity Grows As Their Value Transfers On Ethereum Blockchain Surpasses ETH

Most of the value in Ethereum blockchain is now being transferred using stablecoins rather than the blockchain’s native cryptocurrency, Ether. A fresh analysis by Messari indicate that stablecoins are now more popular on the Ethereum blockchain than Ether.

While Ethereum boasts of its native cryptocurrency, Ether, there are various tokens which have been developed on the network. Most of these tokens are stablecoins which can be said to be digital assets which are pegged to the rate of a different currencies such as the euro, GB pound as well as the US dollar or precious metals like gold.

Previously most of the value that was being passed on Ethereum has been through Ether. However, stablecoins have now overtaken Ether. This has been partly due to the popularity of Tether which is pegged on the US dollar.

Commenting on the current research, Ryan Watkins an analyst working with Messari, said in a tweet,

Tether is also available on Bitcoin Omni layer, however, the firm is responsible for this started moving the Tether tokens to Ethereum last year in April. This led the volume of Tether within the Bitcoin platform to decline drastically. In the recent past, Tether was made available in Tron blockchain and today there is lots of USDT on the platform.

Last year in November, CoinMetrics, a data analysis firm, stated that the volume of Tether transfers within the Ethereum platform were almost three times higher than those of Ether transfers.

The high level of Tether activity within the Ethereum blockchain had began to clog the network. However, miners were able to adapt fast through adding the block sizes and now the network is stable and working seamlessly. However, if Tether activities continue rising, there are reasons for future concerns about the network, Decrypt reports.

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Author: Joseph Kibe

Two out of Five Millenials Look At Crypto During A Recession, eToro Survey Discovers

A new survey has discovered that 40% of the Millenials in America would rather invest in crypto assets than any other kind of asset during an upcoming recession. According to the study, which was conducted by eToro with 1,000 online investors in the U. S. recently, Millenials are the most open investors to crypto.

According to the data, two-thirds of the investors are afraid of a recession, but their solutions for how to handle it are different. While 40% of Millenials have chosen crypto, 50% of Generation Z had chosen real estate. Generation X is more inclined to invest in commodities, with 38% of them choosing this kind of asset.

Another trend is that fractional ownership interest has spiked. 92% of the investors affirmed that they would like to own pieces of artwork during a recession while 55% of them were eager to sell a portion of their current portfolios if they could find new investments that could be more profitable than the ones that they have right now.

Finally, the study also concluded that high net worth individuals are more likely to invest in Bitcoin than any other kind of crypto asset, as it is the most famous and powerful one.

The managing director at the company, Guy Hirsch, affirmed that during a recession most portfolios would end up shrinking. The main difference now is that crypto provides a true new path. The investment would not be confined only to people with a high net worth. Retail investors and not only institutional ones could gain money during the recession.

Hirsch also affirmed that current investors want more freedom besides just following the status quo of investments and they see an opportunity in Bitcoin.

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Author: BEG News Desk

Facebook’s Project Libra Gets Demolished By BitMEX’s Op-Ed By CEO Arthur Hayes

Facebooks-Project-Libra-Gets-Demolished-By-BitMEXs-Op-Ed-By-CEO-Arthur-Hayes
  • Facebook’s Libra seems to be an ETF rather than a digital currency
  • Arthur Hayes seems to be bullish about the effect this can have on Bitcoin

Facebook has recently released a new project called Libra that aims at helping users transact funds between borders, make payments and purchase things, including goods and services. However, there are many crypto enthusiasts that are not so excited about Facebook’s new project. One of them is Arthur Hayes, the CEO of the cryptocurrency exchange BitMex, that wrote a very hard op-ed regarding Facebook’s Libra project.

Arthur Hayes Demolishes Facebook’s Libra

The article that Mr. Hayes wrote is titled “Libra: Zuck Me Gently.” He starts by saying that Libra is not decentralized or censorship resistant, thus, it cannot be considered a stablecoin. This is a point that has been addressed in different occasions since the virtual currency will be controlled at all times in order to be compliant with regulations around the world.

In addition to it, Libra is going to be backed by different fiat currencies around the world, which would make of it a so-called stablecoin. Hayes explains that Libra is going to be destroying all stablecoins in the market.

Hayes went on explaining that the digital currency is going to be working in a similar way as central banks, which is going to be damaging the power that states and central authorities have over individuals around the world. And he believes that this is a good thing.

On the matter, Hayes wrote:

“The speed at which government officials rushed to admonish Libra tells you there is some potential positive value to human society embedded in the project.”

He considers that Libra is not a threat to financial privacy, which has been already gone in the past. The new digital currency and project is going to encourage people to understand that there is a new system that could work as an alternative. He also considers that this is positive for Bitcoin (BTC) because there are going to be several new users learning about the most popular digital asset that could eventually start using it.

Nevertheless, the article that Hayes wrote tries to show that Libra looks like a new investment tool rather than a cryptocurrency. The author of the article says that Libra works in a similar way as an exchange-traded fund (ETF), a recognized financial instrument that pays out interest from a basket of assets.

At the moment, the U.S. Securities and Exchange Commission (SEC) has not approved the first Bitcoin ETF in the market, and there were several proposals already presented in the market that none of them was approved.

In a recent article that was written by Dave Nadig, the managing director of ETF.com, explained that Libra is indeed an ETF rather than a digital currency. He explained that resellers will integrate with exchanges and other institutions that buy and sell cryptocurrencies to users, and will provide liquidity for users that want to convert from cash to Libra and back again.

The CEO of BitMEX said that the most significant disadvantage for Libra is that holders do not appear to be entitled to receive the investment income.

Currently, there are several countries around the world that are trying to understand how to better regulate Libra. The United Kingdom, the United States, France and Singapore are just some of the countries that are evaluating which is going to be the impact of the digital currency in their countries.

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Author: Carl T